The European champions lie sixth in Serie A after Sunday's defeat by minnows Chievo and have now gone four games without a win, prompting speculation that Inter president Massimo Moratti is searching for a new coach.
Capello - who Inter tried to prise from the FA before the World Cup - is said to top that list, with Leonardo, Diego Simeone and Zenit St Petersburg coach Luciano Spalletti also being considered.
So Inter Fab: Capello is back on Inter Milan's radar with manager Rafa Benitez on the brink of being sacked
The FA h ad to renegotiate Capello's contract when Inter came calling in the summer but the Italian has since overseen a dire World Cup and a dismal display against France last week.
An approach by Inter could also suit the FA financially. Capello would have received £6million if fired, but if he chose to leave the FA would be paid a seven-figure sum in compensation.
Going wrong: Ex-Liverpool boss Benitez is struggling to get Inter Milan into top gear
Moratti still holds him in high esteem because of his success with Roma, Juventus and Real Madrid. Inter could make a move as early as this week if they lose Wednesday's Champions League clash with FC Twente.
Former Liverpool boss Benitez is staying positive.
'I still have faith,' he said. 'We can still win the title.'
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Explore more:People: Massimo Moratti, Rafael Benitez, Fabio Capello, Rafa Benitez Places: Liverpool, France, United Kingdom